Reviewing Freedom Financial (OTCMKTS:FDVA) & Mid Penn Bancorp (NASDAQ:MPB)

Freedom Financial (OTCMKTS:FDVA) and Mid Penn Bancorp (NASDAQ:MPB) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares Freedom Financial and Mid Penn Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freedom Financial	-0.78%	-0.57%	-0.05%
Mid Penn Bancorp	13.95%	8.31%	1.06%

Analyst Recommendations

This is a breakdown of recent recommendations for Freedom Financial and Mid Penn Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freedom Financial	0	0	0	0	0.00
Mid Penn Bancorp	0	2	2	0	2.50

Mid Penn Bancorp has a consensus target price of $37.50, indicating a potential upside of 10.39%. Given Mid Penn Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Mid Penn Bancorp is more favorable than Freedom Financial.

Institutional & Insider Ownership

43.1% of Mid Penn Bancorp shares are held by institutional investors. 13.3% of Freedom Financial shares are held by insiders. Comparatively, 7.2% of Mid Penn Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Freedom Financial and Mid Penn Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freedom Financial	$63.61 million	1.35	$380,000.00	($0.07)	-172.86
Mid Penn Bancorp	$350.61 million	2.46	$56.25 million	$2.20	15.44

Mid Penn Bancorp has higher revenue and earnings than Freedom Financial. Freedom Financial is trading at a lower price-to-earnings ratio than Mid Penn Bancorp, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Freedom Financial has a beta of 0.08, indicating that its stock price is 92% less volatile than the S&P 500. Comparatively, Mid Penn Bancorp has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500.

Summary

Mid Penn Bancorp beats Freedom Financial on 13 of the 14 factors compared between the two stocks.

About Freedom Financial

Freedom Financial Holdings, Inc. operates as the bank holding company for The Freedom Bank of Virginia that provides commercial banking, personal banking, and mortgage banking solutions. The company offers personal and business checking accounts, interest bearing business savings accounts, money market accounts, personal savings accounts, certificates of deposits, and IRAs, as well as insured cash sweep and certificate of deposit account registry services. It also provides business term, personal, and mortgage loans; commercial lines of credit; commercial real estate mortgage and small business lending services; home equity lines; and credit cards. In addition, the company offers treasury management, online and mobile banking, remote deposit capture, ACH, and wire transfer services; business valuation, bank-at-work, and merchant services; and prestige banking services. The company was founded in 2001 and is headquartered in Fairfax, Virginia.

About Mid Penn Bancorp

Mid Penn Bancorp, Inc. operates as the bank holding company for Mid Penn Bank that provides commercial banking services to individuals, partnerships, non-profit organizations, and corporations. The company offers various time and demand deposit products, including checking accounts, savings accounts, clubs, money market deposit accounts, certificates of deposit, and individual retirement accounts. It also provides a range of loan products comprising mortgage and home equity loans, secured and unsecured commercial and consumer loans, lines of credit, construction financing, farm loans, community development loans, loans to non-profit entities, and local government loans. In addition, the company offers trust, retail investment, wealth management, and insurance services; and provides online banking, telephone banking, cash management, and automated teller services, as well as safe deposit boxes. The company was founded in 1868 and is headquartered in Harrisburg, Pennsylvania.